Moody’s is the latest offshore commentator to join the chorus singing for caution on the Australian property market. But most of the comments on Australian property from offshore people are very generic and really don’t understand the nuances of the Australian property market or how mortgages are granted in Australia.
They don’t understand that the Australian cultural psyche is you will pay your mortgage under any circumstances, no matter what. Our “property correction” was property going sideways for about five years.
If there had been a massive overbuild then I would be worried but at the moment there seems to be no oversupply, there seems to be undersupply and I continue to be bullish on East Coast residential property prices and a new home construction/ renovation/mortgage credit cycle.